Zomm is a device that sends you an alarm if you misplace your keys or phone. You’ll be notified if a device attached to your keychain moves away from your phone for roughly 20 or 30 feet.
The device will glow in the dark and vibrate. A loud alarm will sound if that doesn’t arouse your attention, and continue to do so until you turn it off. The alarm can be turned off by pressing a button on the gadget.
You can also use the Zomm to locate your keys. You can also use it for emergencies – you can program it with anyone’s phone number.
The founder of Zomm’s technology startup, Henry Penix, pitched his invention on Shark Tank in October 2012. He entered the Tank seeking a massive $2 million investment in exchange for a 10 percent stake.
What is Zomm?
The Zomm wireless leash is a key fob that notifies users by twenty feet when they walk away from their iPhone. When the twenty-foot threshold is reached, the product gently vibrates.
If the user does not respond to the vibrations, an alert will sound, steadily increasing in volume until the user turns it off. You can also use Zomm to find lost keys.
|Product||Wireless Leash For iPhones|
|Investment Seeking||$2,000,000 For 10% in Zomm|
|Final Deal||No Deal|
|Episode||Season 4, Episode 5|
|Status||Out of Business|
Who is the Founder of Zomm?
Zomm appears to be founded by Henry Penix alone; however, Laurie (his wife) played a pivotal role in its development.
The Penix has a successful track record as an entrepreneur. They already had a successful daycare, Koala Care Preschool, before Zomm.
Henry Penix currently serves as CEO of Soaak, which uses digital frequencies and daily meditations to provide positive mental health outcomes and wellness solutions. ZOMM has ceased operations, but he remains its CEO.
Zomm Before Shark Tank
The Oklahoman resident was a parent going to Oklahoma to grow up before joining Shark Tank to promote his company Zomm.
Zomm is derived from the first letter of each of his children’s names, with the last M representing his mother.
Henry put a significant amount of money into developing the product that he pitched on the tank to make it fantastic and attract another investor.
The Penix family sold their preschool to raise funds for the development of the Zomm multi-use fob key.
A second investor committed $5 million to the investment, bringing the total to $9 million.
This key fob is an ingenious acronym comprised of the initials of their children’s names. The final letter is for mom, indicating that he acknowledges his wife.
Zomm holds many patents. Originally designed to notify a user if they forgot their phone.
However, the product was developed to include additional functions, such as emergency dialing. A user may contact a designated emergency contact or 911.
Zomm was an instant success on the market due to its unique innovation. It achieved $750,000 in sales in 2010 and was named the winner of the CES Innovation Award. In 2011, the sales volume nearly doubled to $5,000,000.
When the company debuted on Shark Tank in 2012, the projected sales were $7,000,000. Sharks are naturally interested in the business, as it is not surprising.
How Was The Shark Tank Pitch of Zomm?
Henry Penix entered the Shark Tank from the stage. He informed the Sharks that he was the CEO of a technological company called Zomm. He sought $2 million in exchange for a 10% interest in the business.
According to Henry, Zomm develops products and services that enable consumers to utilize their cell phones in novel ways. He asked the Sharks whether they’d ever left their phone at home and then spent the rest of the day contemplating it.
Henry stated that he could relate to such a predicament. His startup, Zomm, creates keychains that alert users when they take their hands off their phones.
Henry demonstrated by requesting that Mark hold the gadget as Henry walked away with the phone.
Henry informed him that he should be sensing vibration and witnessing my contract. Mark verified that was the case.
Henry proceeded, stating that if you did not return to get your phone, an alarm would sound, gradually increasing in volume. With a touch of the middle button, you can power down the gadget.
According to Henry, the device doubles as a key finder. He handed Daymond the device and instructed him to deliver it to another Shark when Henry turned back.
Henry was able to locate the device immediately using his phone. He then informed the Sharks that the device doubled as an emergency dialer.
He stated that any number could be programmed into it. He tapped a button and called his wife, who inquired as to whether he was in danger. Henry responded that he might be, since he was now “Swimming with Sharks,” and hung up.
Daymond inquired whether it was a more contemporary version of “I’ve fallen and am unable to get up.” Henry confirmed that it did have that feature, claiming that it drew in many clients.
Daymond stated that he had previously seen the individual components in numerous items and inquired whether it was the sum of all the parts that made it worth $20 million. Henry stated emphatically that it was.
Mark was interested in learning about the company’s sales, costs, and retail prices. Henry informed him that they grossed $750,000 in 2010, their inaugural year. He added that he had won invention prizes in the last three years and held global patents.
Robert inquired about the following year’s sales, and Henry stated that they exceeded $5,000,000,000. The Sharks appeared to be impressed. Robert asked as to the 2012 forecasts, and Henry informed him that they were $7.2 million.
Daymond agreed that was a reasonable point and inquired as to the profit margin on that. Henry expressed excitement at the figure and stated that the company would earn $2 million.
Kevin inquired as to whether that figure included all expenses, including paying his employees and himself. Kevin stated that this was the case.
Daymond inquired if he intended to reinvest the money back into the business, as that was the two million he was seeking. Henry stated that he had never accepted a salary from the company and had always invested money.
Robert inquired about the amount he had invested, and Henry informed him that it was $4 million. Robert was taken aback.
Daymond inquired as to how he obtained the funds. Henry stated that he had sold a firm he co-founded with his wife, an early learning center.
He indicated that he manages the business entirely on his own, with the assistance of one other investor who owns 17%. The other investor contributed $5 million.
Mark inquired as to if this meant the business was losing money. Henry was perplexed by the question. Robert summarized that $9 million had been invested in the burgeoning business, but he was still short on funds. Lori was curious as to why.
Daymond stated that something did not appear to be entirely right. Henry mentioned that they were working on another product, and the light bulb went off for the Sharks.
Henry said they’d received three innovation prizes for the new product, which was not the one he’d demonstrated.
According to Henry, it performs the same function as the other product and monitors heart rate and other health data.
Robert inquired how he managed to burn through nine million dollars, even though he was developing a new product. It had been less than two years.
Henry informed him that Zomm possessed approximately $2 million in inventory, but Robert informed him that the figures did not add up.
Mark stated that the numbers do not add up because they should not be holding two million dollars in inventory if sales were that good.
Henry suggested that the previous Christmas’s overproduction was a factor. Mark stated that he has an excess of inventory and that his solution is to raise $2 million to invest in another product.
Henry added that they wished to continue with the current product while possibly introducing a new one.
Daymond inquired as to the amount of money spent on research and development. Henry sidestepped the topic by stating that they have reinvested all money they have ever invested in the company.
Daymond. Daymond was not about to give up and requested another estimate. Henry stated that he was unaware of the precise amount. When asked if he had spent more than a million, Henry stated once more that he was unaware.
Mark informed him that he had spent an absurd amount of money and had no idea where it went.
Daymond stated that he understood that he lacked an exact figure but desired an estimate. Henry estimated it to be well over a million.
Mark asked whether he had retained marketing MBAs to assist him in developing a marketing strategy once he got started. Henry mentioned that he had employed sales and marketing professionals.
Mark inquired as to whether he had raised sufficient funds to go big or go home. Henry compared himself to Steve Jobs and said his desire for every cell phone to include a Zomm.
Mark explained to him that his dream is destroying him due to his irrational expectations. He attempted a home run when a single would have won the game. He exited. Henry inquired as to if he was sure, and Mark answered that he was.
Robert stated that Henry had accomplished two feats that the majority of Shark Tank contestants are incapable of. He has raised $9 million and generated sales of $5 million.
Robert stated that his company is primarily on the verge of bankruptcy, something Henry was unaware of. He left, having stated that he would not gamble with his own money on Henry.
Daymond congratulated Henry on a brilliant business idea and execution but shivered at the prospect of perusing his books. He exited.
Observing the absence of the other Sharks, Henry confronted Lori and Kevin. Lori stated that she believed the product was excellent and liked his commercial acumen.
Her issue stems from Zomm’s current position — after raising the nine million, generating that much revenue, and still needing to seek additional funding. It alerted her to the fact that something was wrong, and she stepped outside.
Kevin expressed interest in the sales. He stated that when he parted with his money, he desired to return with abilities and muscle.
Kevin feared Henry and Zomm would rob him of his money. Henry sought to reassure Kevin that he would not murder the money, but Kevin countered that he had squandered a lot of money.
At this point, Henry was pleading with Kevin to seize the majority of Zomm’s board seats. Kevin stated that he was averse to seizing authority, despite mending Zomm in “Darwinian ways” that Henry would find unpleasant.
He appeared to be referring to throwing Henry off the board. Kevin exited. Henry expressed gratitude for their time and then departed.
Mark stated as Henry walked dejectedly off the stage that he went too big. He continued, claiming Henry should have come in the day he launched Zomm, requesting $250,000 for a 25% stake. He believed that the Sharks would have jumped on the opportunity.
After binge-watching Shark Tank over the last couple of months, I’d have to disagree. Even when a product is excellent and sells well, consumers are turned away.
Robert expressed regret, stating that Zomm developed a fantastic product. Let’s have a look at Zomm’s performance over the last couple of years.
What Happened To Zomm After Shark Tank?
Zomm’s website traffic and sales increased dramatically following their appearance on Shark Tank.
They received over 250K visits to their website in the week following their presence and generated a significant amount of revenue.
Zomm continues expanding their “personal concierge” service, which enables users to phone 911 and a predetermined list of numbers in an emergency.
The digital age’s equivalent of the “I’ve fallen, and I’m unable to get up” merchandise. Zomm will continue to develop its concierge service in the future.
Zomm dubbed the “Wireless Leash,” is still available online, notably at Amazon, as indicated above. The standard ZOMM Wireless Leash retails for $49.95 in black, white, and pink; the ZOMM Wireless Leash Plus retails for $79.95. The ZOMM Wireless Leash Plus enables you to answer incoming calls while driving and geo-locate your vehicle.
Penix is presently employed in the real estate industry. According to Tulsa World, Penix staged an open house for Oak Leaf Estates in July 2017. Oak Leaf Estates is a 34-lot gated neighborhood in south Tulsa.